Last week we broke the story that well-known film director, Guillermo del Toro, was working on a "big deal with a big company" to create video games. At the time, del Toro was unwilling to disclose the name of the company or what sorts of games he would be working on, only saying that they would be "technically and narratively very interesting."

Ben Fritz of the LA Times is now reporting that sources close to the matter have confirmed that del Toro's deal is with THQ and is close to being finalized.

THQ has recently put a lot of focus on broadening their spectrum of games, including a greater focus on core games like "Homefront" and "Red Faction: Armageddon." They're also working with Syfy to produce a movie based on the "Red Faction" franchise.